Tuesday , December 1 2020

"This is a problem that must bother us"

The strong demand for all segments of the population to live in well-located areas, adding a deficit in city planning, makes house prices higher. So it was held by the corporate general manager of Empresas Socovesa, Mauricio Varela.

"We have large cities like Santiago that are planned fragmented in each of the municipalities and others that have not done good planning, and today we have problems with land scarcity in places where compaction projects are being implemented. And that explains why house prices have risen in Chile's big cities, especially in Santiago, "Varela explained after the meeting of the company's shareholders.

This situation, he said, "is something that we must continue to discuss with the authorities." He says the Association of Construction Entrepreneurs (ADI) -Varela is chairing the union – is participating in the National Council for Urban Development, where he "saw the participants that the cost of housing is a matter that must affect us." "People have to spend a higher percentage of their income each and every time to pay for a roof, either by leasing or by buying, because at the end everyone has to pay for the place where they live," he says.

With regard to the project's start-up plan, this year, the company plans to build 63 new projects or project stages with a total of 5,066 new homes for a total sales volume of $ 15.7 million ($ 649 million), which is equivalent to a 29% increase compared to 2018.

For 2019, the plan to purchase land is projected at UF 3.8 million, which mainly includes land for the development of land-use and height-building projects in 2018.

To meet this investment plan, however, he pointed out that the big challenge is the process of projects, a process that is "slower than we are used to." This, in addition, "has higher costs in projects," he says. "It is reasonable to think that projects must be up to date for all of their procedures, but the surplus of bureaucracy is related to the costs that the end of the bill will pay to consumers," he said.

Regarding the latest opinions issued by the chief controller, he pointed out that "they are going in a direction that seeks to clarify certain situations and in this sense we find that they are positive."

With regard to the proposal by the Chilean Chamber of Construction (CChC) to eliminate VAT on the sale of homes by up to 2,400 UF, he said that since everyone is already working on this framework, "we think it prudent" because stability in the industry is good in the rules of the game. "

"As far as tax reform is concerned, everything is fine, but we are also looking for stability in the rules of the game towards companies and consumers and we prefer to keep things as they are today. specific VAT. It works well, companies and consumers know this, besides some technical things that need to be reviewed, for which they are working, "he explained.

"Changes in specific tax issues in the industry at the time brought some distortions that we think are delicate and we would not want it to happen again. We believe that with clear rules of the game, everyone can plan their investments and consumers know what the conditions are and can make quieter purchasing decisions. We think the healthiest thing is that the rules of the game are preserved, "he added.

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